FedEx and UPS Look Towards Higher Shipping Demand

FedEx Corporation (FDX) and United Parcel Service, Inc. (UPS), which are considered bellwethers for the overall economy, saw their shares move higher after FedEx announced preliminary results that topped its forecast of 45 cents per share. The news also suggests that trade within the U.S. is also starting to pick up, suggesting a continued economic recovery.

The bullish news also helped shares of rival UPS move higher last week, moving up 4.44% to $58.80 per share. Unlike FedEx, UPS has remained a little more cautious in its guidance, and has yet to make any updates to its guidance for the coming quarters. However, the two companies have traditionally traded relatively close as they account for some 80% of the market in the U.S.